What is the Raise the Roof campaign?

Campaign target diagram

Raise the Roof is a campaign to get a fair deal from the Treasury for people who choose to rent out a room in their home.

The threshold of the Rent a Room Scheme hasn't been changed since 1997 and is drastically out of date. It currently stands at £4,250; the campaign would like to see this rise to a minimum £7,500 a year.

  • If the allowance had risen in line with inflation the threshold would now be at least £6,500
  • The average UK rent for rooms let to a lodger is £5,593 a year (£7,667 in London)
  • Renting out a room is the single biggest step struggling homeowners can take to avoid arrears and repossession
  • Encouraging people to rent out rooms provides a vital source of quality, affordable rental accommodation

Why should the income threshold be raised?

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2009/10 Threshold project

The Rent a Room Scheme was set up in 1992 to encourage people to rent out rooms in their homes. It lets anyone taking in a lodger earn up to £4,250 in rent tax free. Since this amount was last increased in 1997 it hasn't changed, yet rents have risen dramatically.

Average income from rentals

The average UK rent for rooms let to a lodger is £5,593 (£7,667 in London, where demand for shared accommodation is highest) an increase of 103% since 1997. If the allowance had risen in line with inflation the threshold would now be at least £6,500.

Advantages

If the incentive doesn't reflect the current market it will stop being an incentive. We need people to keep letting out their rooms.

Why should the income threshold be raised?

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Who this helps:

1. Homeowners
Renting out a room is the single most effective way for homeowners to generate extra income and deal with the current cost of living crisis. It also helps combat the threat of repossession.
2. Renters
There simply aren't enough properties available in the UK. More people renting out rooms means a supply of affordable accommodation, largely for the younger generation, but also for the increasing number of 40- and even 50-somethings who can't afford to rent on their own. With ownership drifting out of the reach of millions we have to provide suitable, affordable alternatives.
3. The environment
Two people living together have a 40% lower carbon footprint (per person) than they would living separately; this rises to 59% for people sharing a 5 bed house.
4. The economy
London and the South-East face acute shortages of affordable housing and businesses are struggling to recruit in these areas. Increased supply keeps rents down and enables people to live where jobs are being created.
Campaign tickbox

Why should the income threshold be raised?

Single person households

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Addressing the UK's housing crisis:

In 1968, our best year for housebuilding to date, we still only managed to add around 2% to housing stock. We're not building at anywhere near those levels today so the key (at least in the short term) isn't how many houses we build - it's how we use existing stock.

There are an estimated 15 million empty bedrooms in owner occupied properties in England alone. Under-occupancy amongst homeowners stands at 49%, compared to 10% in the social sector and 16% in the private rented sector. If we free up just a fraction of these rooms we'll have affordable accommodation for hundreds of thousands more people without having to lay a single brick.

Who supports the Raise the Roof campaign?

Roger Harding, director of communications, policy and campaigns

"""As the cost of living rises and wages stagnate, high housing costs are stretching many family budgets to breaking point. For homeowners struggling to pay the mortgage each month, letting out a room to a lodger could provide them with a valuable source of income each month - but the threshold of the Rent a Room scheme needs an increase to make this an attractive option. Not only would this give renters more options, for some struggling homeowners it could make it easier to balance the bills."""

We'll be adding further partners throughout the campaign as more people lend their support to Raise the Roof.

Who are SpareRoom.co.uk?

The UK's most visited Flatshare site

SpareRoom is the UK's busiest flat and house share site, visited by 1.5 million people every month, and is in the top 500 websites for UK traffic.

Since our launch in 2004 SpareRoom has been at the forefront of the online shared accommodation market. In the past 10 years we've helped hundreds of thousands of homeowners navigate the process of finding a lodger, as well as helping millions more people find their perfect flatmate or room to rent.

The Essential Guide to Flatsharing

The Essential Guide to Flatsharing

In June 2009 How To Books published 'The Essential Guide to Flatsharing' (now in its 3rd edition), written by two of SpareRoom's directors and collecting together 10 years' experience of dealing with shared accommodation.